Loans for Rhode Island Students
Start the Application Process with Valuable Knowledge
Students in Rhode Island could not have a more comprehensive state agency for financial aid than the Rhode Island Student Loan Authority (RISLA). While other states are rationing out alternative loans to partner lenders who in turn use another company to service the loans, RISLA packages the whole college loan deal and offers it very succinctly.
RISLA
The Rhode Island Student Loan Authority is a branch of the state government where state college bound students and parents can both access low-cost, low-interest federal loans and private loans, as well as gather the necessary information to make educated choices about college. Students who are pursuing careers in law, teaching or healthcare may also access low-cost loans specially designed to reward their career choice.
Federal Loans
When state-funded agencies such as RISLA offer students the opportunity to finance their federal loans with them, they are offering up monies freed up by the state that are tax-exempt. Money that is not subject to federal taxation automatically saves state residents a significant amount of money on their federal loans. This is how RISLA is able to keep interest rates low and bear the burden of origination fees. Also, when borrowers pay on-time and setup repayment to be automatically deducted from their bank accounts they qualify for deeper rate cuts. Why? Both on-time and automatic deductions are cost-savers, which can then be passed onto customers.
RISLA Alternative Loans
For most college students, federal student loans are simply not enough. Staffords max out after a few thousand dollars, which falls shockingly short of most college tuitions. In order to make up the difference parents have, in the past, augmented college savings with home equity loans and even taken out second mortgages to finance college. In response, lenders of all kinds have established alternative student loans specifically created to fill the money hole left behind after federal funds have been disbursed.
- The Rhode Island Family Education Loan is an aptly named alternative loan offered to RI students. Borrowers are encouraged to seek a co-borrower with good credit, but are also advised to have good credit themselves. In most cases the better your credit or that of the co-borrower the better the interest rate on the loan. The Family Education Loan may provide up to an extra $35,000 each year for students. Perks include a fixed rate of interest and an opt-out for the co-borrower once consecutive on time payments have been made. Also, students are exempt from payments until after graduation.
- The College Bound Loan is a competitive alternative loan that is offered to “preferred borrowers.” Again, the better your credit the better your loan.
- College Bound Bar Review Loan is offered specially to law students attending Roger Williams University. It goes without saying that besides medical students law students can rack up some serious debt and this loan offers them as many low-cost, low-interest bells and whistles as it can muster.
Career-Specific Loans
Nursing, pharmacy and teaching students may all access specially formulated reward programs. Those who already work part-time in RI may be eligible for attractive student loans designed to offer monetary incentive, as well as keep these much needed professionals working in Rhode Island. The Nursing Reward Program, Pharmacy Reward Program and Teacher Reward Program all offer a percentage off the balance of the loan for those who stay working in the state.
Repayment and Consolidation Loans
Nowadays it’s pretty common that graduates are encumbered with absurd debt load after college. In fact, most loans come due six months after graduation, which is barely enough time to get a job and a place to live. In order to help new grads succeed, for now and in the future, consolidation loans are available that can take the sting out of those heady monthly payments. Federal Consolidation Loans allow borrowers to refinance multiple federal student loans, repackage them into one lower monthly payment, and extend the payment period. Yes, you pay more for your loans in the end, but you eliminate your chances of defaulting and ruining your credit.
